The Visakha Container Terminal Private Ltd (VCTPL) – the sole company which bid for the Rs 633.11-crore expansion of the existing terminal - is likely to get the Letter of Award by the month-end.
The Visakhapatnam port floated global tenders for the project in October, 2012. Sources have said that after security clearance from the Ministry of Home Affairs and the Ministry of External Affairs, the letter may be issued subject to ‘satisfactory price offer.’ Environment clearance may come in a few more months.
The VCTPL, a joint venture of United Liner Agency and DP World, seeks to expand the terminal of 450 metres by 850 metres. VCTPL took up the terminal project under PPP mode in 2003.
The finalisation of bid for expansion project will depend on royalty offer to be made to the VPT. The Cabinet Committee on Economic Affairs cleared the project on Tuesday.
The project is being awarded on design, build, finance, operate and transfer basis.
According to the concession agreement, the successful bidder will be given 24 months to complete the expansion of the terminal.
The agreement will be for 30 years.
The company invested Rs 120 crore recently in acquiring four rubber tyre gantry cranes and two rail mounted quay cranes and additional storage in an area of one hectare in the outer harbour of Visakhapatnam Port.